Cyprus’ international investment position (IIP) deteriorated in the first quarter of 2025, recording a net liability of €31.01 billion compared to €29.18 billion in the fourth quarter of 2024.

The figures are based on preliminary data for the first quarter of 2025 released by the Central Bank of Cyprus (CBC), covering the balance of payments, international investment position and external debt.

The Central Bank said the IIP, when adjusted to account for the impact of special purpose entities (SPEs), showed a net liability of €12.92 billion in the first quarter of 2025, up from €11.10 billion in the fourth quarter of 2024.

According to the preliminary balance of payments data, Cyprus’ current account deficit widened, increasing from €947.0 million in the first quarter of 2024 to €1.21 billion in the first quarter of 2025.

After adjusting the data for the treatment of SPEs as non-residents, the deficit stood at €1.09 billion in the first quarter of 2025, compared with a deficit of €1.10 billion in the same period of 2024.

Meanwhile, gross external debt fell to €243.40 billion in the first quarter of 2025, down from €246.17 billion in the fourth quarter of 2024.

External assets in debt instruments also declined, reaching €225.89 billion from €227.27 billion in the previous quarter.

As a result, net external debt dropped by €1.39 billion, standing at €17.51 billion in the first quarter of 2025, according to the Central Bank.

Adjusted for the impact of SPEs, gross external debt reached €59.05 billion in the first quarter of 2025, compared to €59.73 billion in the fourth quarter of 2024.

The corresponding figure for net external debt decreased to -€24.64 billion in the first quarter of 2025, from -€24.35 billion in the previous quarter.